Plastic machinery is an important pillar of the plastics industry and its development. The value of the global output of plastic machinery reached 33.9 billion euros in 2019, and the industrial sales output soared to 40.065 billion yuan, an increase of 59.72%.
Developing countries like Turkey, the Czech Republic, and Iran will see an increase in demand for plastic processing equipment thanks to steady economic growth, continued industrialization, and rising incomes. Analysis of the plastic machinery industry indicates that packaging will remain the largest facet of the market, accounting for more than one third of sales in 2017. The second largest area is consumer goods and construction. This distribution is advantageous to China, indicating that its plastic machinery enterprises will have great potential for development.
China has become a large producer, consumer, and exporter of plastic products, and with strong support from all levels of government, its plastic processing industry has made breakthroughs in numerous realms. Advancements in raw materials manufacturing, plastic processing, and plastic recycling industries are allowing plastics to gradually replace steel and glass components in the automotive, home appliance, and electronics industries.
As of 2019, China’s plastic machinery market size (including injection molding machines) is about 60 billion yuan. Comparing China’s plastic machinery market to its GDP since the 2008 financial crisis, one can conclude that the growth rate trends of the two are similar, and aside from the recent extreme economic environment, the industry as a whole maintains steady growth.
Improvements to the “upstream” plastic processing industry promote the rapid development of plastic machinery. China’s plastic processing industry has developed quickly, and during this development, it has transitioned from a quantity-oriented approach to one of developmental quality and efficiency. Investments in fixed assets in major “downstream” industries is up, and investment demand continues to increase. The year-over-year growth rate of fixed asset investments in the auto industry was also positive in 2019, with a growth rate of 11.20%, compared with 2.80% in the same period the previous year.
The developmental prospects of the plastic machinery industry highlight China’s increasing fortitude in this realm. Foreign brand manufacturers like Engel, Demag, Sumitomo Demag have settled in China, and the rapid improvement of injection molding machine technology has been recognized by both domestic and foreign customers. The increasing strength of the domestic manufacturing industry as a whole serves to bolster the development of exports, while also reducing China’s dependence on imported plastic machinery. In recent years, China’s export of plastic machinery has accounted for more than 20% of the domestic plastic machinery industry’s total income, making it a major contributor to the industry’s development.
In February 2020, the State Council issued the 'Equipment Manufacturing Industry Adjustment and Revitalization Plan,’ which included the plastic machinery industry as part of its focus. This was the first time since the founding of the People’s Republic of China that the plastic machinery industry has been included in this plan. It’s also the first time it’s been elevated to the level of national strategic industry, marking an important milestone in the industry’s development.